The stock price plummeted because it was rumored that the State Reserve threw hundreds of thousands of tons of aluminum reserves into the market, which caused market concerns and eventually led to a sharp drop in the company's share price. In fact, not only Yunnan Aluminum, but also aluminum stocks including Mingtai Aluminum and Jiaozuo Wanfang also fell sharply due to this negative news. The market is mainly worried that such a large-scale reserve aluminum put into the market may lead to a sharp drop in aluminum prices. However, some analysts pointed out that the rumor has not been confirmed by any party so far, and it may still be in the discussion stage, and there may not be any actual action.

According to the data released by investment banks, the domestic aluminum reserves are around1200,000 tons, and the annual consumption is close to 40 million tons. Even if this 500,000 tons of aluminum is thrown out, the market cannot change the fundamental pattern of the industry, and the market is still in short supply. In the long run, the price of aluminum will not change much. This so-called sell-off may be a test of news to avoid such a large-scale sell-off in the future.

Judging from the development of this industry, aluminum prices have been skyrocketing, and the whole market has not changed much. Moreover, because the manufacturing and production of aluminum involves a lot of energy consumption, it is impossible to expand the production capacity of aluminum under the background of carbon neutrality, so the pattern of short supply has not changed, and its price trend is still improving.

References:

In the long run, it is a basic consensus that the electrolytic aluminum industry has high energy consumption and high carbon emissions, and the future supply will be limited under the goal of carbon neutrality. The supply-side reform of 20 17 aluminum industry has led to a high probability that the ceiling of production capacity will move down further, and the long-term contraction pattern of supply side will remain unchanged. This dumping rumor has not been confirmed at present, and it has limited impact on the market, which makes it difficult for aluminum prices to continue to fall deeply. If there is substantial progress in subsequent dumping, we should still pay attention to its actual quantity and rhythm. Considering that the current aluminum price is at a historical high level, the aluminum factory is profitable, and the downstream acceptance of the high aluminum price is poor, if there is a substantial negative release, it will still have an impact on the market in the short term, but it is difficult to make up for the long-term supply gap.